blog post
Be Digital at the Core
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What does your company do? Today, the answer needs to be bigger than a specific product or service.
The answer is having a true purpose, a reason for being. Having a purpose drives longevity, gives your business a reason to exist past the next waves of change. And while that purpose may remain consistent, the products or services it calls for decidedly will not. So what gives you the ability to change when you need to? And how do you know that ability will always be there?
The solution to both is being digital at the core.
Each business’s path to transformation will be unique, but these five capabilities will enable it to identify and realize value — at a pace that matches the change happening around it. Let’s take a look at each one.
One: Strategy
This is the capability that connects the business’s purpose directly to the solutions it can create in customers’ lives. What is the product? Where is there a market for it? What’s the business model to deliver it? Strategy sets the goals and then partners with the other capabilities to reach them. Through pilots and testing, strategy stays involved in the process. It determines the feasibility of building, scaling and taking new products or services to market.
A transformation strategy is a portfolio of moves, and businesses have three routes they can take. Often, a series of bets can help de-risk the overall portfolio while creating space for innovation:
1) Defend: serve existing markets and audiences using best practices
2) Differentiate: enter new markets and audiences using extensions, enhancements, improvements
3) Disrupt: create new markets and audiences using new business and structures
Strategy is also where you identify the right partners—partners are crucial to creating the most value for both the customer and the company. An ecosystem of the right partners gives you access to customers, more insights and visibility, and talent and capabilities. Because in these times, it’s nearly impossible for a business to hold all the capabilities it needs.
Two: Product
Product is the glue, bringing all the capabilities together in service of the customer. Products are defined and designed collaboratively with the interests of the brand, interests of the consumer and continuous innovation baked in. It’s about solving problems, not implementing features. And risks are tackled up front, rather than at the end.
Product management flips project management on its head—rather than using the three restraint factors of time, cost and scope, product management uses speed, quality and value. Product iterates, tests, learns and operates in continuous development. Every business is different, and the key is to find the delivery methodology that works for each business. The methodology has to drive value consistently, with quality, over and over again.
Three: Experience
Every time a customer’s expectations are exceeded, the bar gets raised. Experience not only changes what a business produces, but how fast it can produce and evolve it. Experience tries to create value throughout the entire customer journey, which means it must cross organizational silos. It’s multi-disciplinary and bridges the gap between strategy and the rest of capabilities.
Experience can’t just be focused on the front-end, though—everything that customers see and interact with is controlled or informed by internal functions. So the way the customer experience works has to be connected with the way those internal functions work. Today, data, data systems, AI and machine learning gives experience designers the ability to move at a faster pace, while using computation in their designs.
This is where the LEAD framework comes in. LEAD can help determine whether the experiences are of quality to the consumer. It does this through the lens of computation:
Light: Speed, timeliness and responsiveness
Ethical: Openness, honesty and transparency
Accessible: Inclusivity, embraces diversity and is consistent across all touchpoints
Dataful: Personalized interactions that anticipate audiences’ situations and needs
Four: Engineering
In short, engineering’s role is to figure out what’s possible through technology, and execute it. Then, it tests and refines based on customer needs. In the past, technology was primarily functional, used to drive efficiency. Now, tech is used to solve problems and create value by connecting the back end with the front end.
A modern engineering capability is built upon three factors: architecture, ways of working and talent. In each, it requires a shift in focus to product and value. How do you get there? Through the three methodologies mentioned above: agile, lean and DevOps.
Engineers of today have to be plugged into factors outside their field and more interactive with other capabilities than in the past. They need to be able to handle ambiguity in how various tech is applied to make a product or service work. They need to know the customer and have visibility into feedback loops. They need to work in multi-disciplinary, autonomous teams. And they need to work towards shorter cycles and continuous delivery.
This is where cloud comes in. Cloud can be viewed as a design component—how a company can create flexibility and agility within its systems architecture. The application of cloud evolves over time, though, so businesses need a clear vision for how to use cloud in the context of the products they’re creating and the value streams within them.
Five: Data
Data is a heavy asset. To reach a competitive advantage, it’s a must-have, a non-negotiable. It feeds every other capability area and enables high levels of computation. The Holy Grail is to create data that can be used to optimize multiple business functions and offerings. To not only drive a better customer experience, but to innovate new products and services, and to run operations more effectively.
Conclusion.
All five of these capabilities will evolve over time, but together they give a digital organization its identity: what products, services and experiences it’s able to create, and the cultural principles that comprise it.
The products and services they help create should be continuously optimized, and new opportunities should be constantly explored. The capabilities’ work is never done. In this way, no matter what products or services your business needs to fulfill its purpose, you’ll have the flexibility to provide them, by being digital at the core.
Author
Steve King
Managing Director, CyberEd
King, an experienced cybersecurity professional, has served in senior leadership roles in technology development for the past 20 years. He has founded nine startups, including Endymion Systems and seeCommerce. He has held leadership roles in marketing and product development, operating as CEO, CTO and CISO for several startups, including Netswitch Technology Management. He also served as CIO for Memorex and was the co-founder of the Cambridge Systems Group.